Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1887-05-07
what Gas Costs.

One of the best kept secrets is the actual
cost Of gas making in America. Racks and
thumb screws might, perhaps, extort the
truth which the severest cross examination
before legislative committees has failed 10
elicit It is the subject of conjecture and in
ference like the nature of comets, the dis
tance of the fixed stars, ths cause of earth
qualles, Che origin of the diamond. There
are certain data by which we arrive at
proximately accurate conclusions about the
cost Of gas st the works. No matter how
low we put it, the statement Is never contra.
dicted by any responsible president or chief
engineer of q gas company. From this fact
we infer that the outside estimate is always
TOO high for the reality, and that those who
are concerned in keeping up an illusion are
well satisfied if we come no nearer the
truth.
We discover, buried in the last issue of
United States Consular Reports, some inter-
cstng facts and figures bearing on this mys
terious subject. They are from the pen Of
Consul Schoenhof, who seems to have q nat
ural aptitude for such Investigations,
and lie may have been instructed by our
Government to make them. If so he has
been put to q work moro useful than the
routine business which falls 10 the share OF
our representatives abroad The details ne
furnishes are so full and precise as TO leave
no doubt OF their general correctness. His
inquiry took in a large range, and is practi-
cally exhaustive. tt relates to fifteen me
tropolitan works, nineteen provincial works,
and the immense works 81 Stoke which are
managed upon plan somewhat different
from the ether two classes. And here are
some Of the concentrated average results.
At stoke the gas ready for delivery costs lin
even iigures) 80 cents q thousand cubic feet,
and is sold to consumers at IS. The metro
politan companies produce their gas at ar
expense of 46 cents and furnish it at 20. The
provincial concerns make gas for 3S cents
and supply il at 5Si. Coal is cheapest in
tho Stoke district, being procured from
mines in that vicinity This is the reason
why the gas costs less there than elsewhere.
Iu London the price of gas coal is about
the samo as in New York. AT the provin-
cial works generally the residual products
(coke, tar and ammonia) sell for more than
in any other market, thus enabling the
companies TO deliver their gas at the low
rates mentioned. These by-products are so
economically obtained and carefully saved
that they yield, aside from the gas, n profit
Of nearly per cent. on the capital invested.
Human nature is the same everywhere,
and the selling price of gas in England
would not be as just and reasonable as we
End it but for the wholesome operation OF
the sliding-scale law. In granting to the
companies the highly valuable franchises
they possess, Parliament, in order TO protect
the public, fixed the maximum price Of gas.
So far from questioning the power OF the
State to DO this, the corporations were only
too glad to get the concessions on such
terms, and, in every case, they voluntarily
named their maximum rate, making 1t low
in order to procure iayors from Parliament.
The rate Of dividend is also fixed by the
same authority-varying from to = per
cent. yearly on the par value OF the shares.
Now, whenever 9 company reduces the price
of gas to the public, say one penny lit is I'd.
in some charters) below the maximum price,
il is allowed to add of l per cent. to its
regular dividend for every such reduction.
The fluctuations of prices in the interest OF
the consumer aud of dividends for the bene-
fit of the shareholders obey this simple rule
as truly as stationary steam engine con-
forms the speed of its lly-wheel to the i'm
pulses or checks of the automatic govern
or; In other words, the system is perfectly
selfr regulating.
If. in the United States, the cost Of labor
at the works is higher than in England, the
adoption of the patent water gas process
here goes far to counterbalauce that one dis.
advantage. We know of no good reason
why gas should not be sold as cheaply here
as in London. From source which has
our entire confidence we learn that tits pos
sibe to manufacture the water gas OF quail.
ity equal to any furnished in this vicinity at
less than an average cost of % cents at the
works Our neighbors on the other side OF
the East River. who charge 3 for similar
article, are fighting two bills in the Legisla.
ture-one which reduces the charge 10 Sl.25
and the other to SLIGO. 1t is certain that
with any fair, economical management it
might pay very handsome profit, even at
the inside; rate we have named.-N. y.
JournaI Of Commerce.